Rents in SoBo may rise as state could revive controversial amendment to act
Seven months after it decided to scrap the proposal to amend the rent control act, after flak from citizens, the state government has now decided to revive the plan. This move will affect the rent for several old properties, especially in the island city, which includes south and central Mumbai.
The state is now considering lifting the freeze on the rent of homes above 860 sqft and commercial spaces above 500 sqft from the purview of the Maharashtra Rent Control Act, 1999, a move which, if approved, will make the rent of these spaces on a par with the market. A majority of big properties with frozen rents are in the island city. The protection of the Act is a reason why the real estate prices are high given the limited real estate. Tenants of a large number of houses in old buildings, which are bigger in size, pay less rent than the prevailing rates in the market as they are protected by the Act.
The call to revive and retain this clause as part of the state housing policy was taken at a meeting called by chief minister Devendra Fadnavis on Wednesday, to discuss various aspects related to the state’s housing policy.
The decision comes after the housing department produced figures to show that only 9% of residential properties were above 860 sqft and would be affected by the decision.
CONTINUED ON P12